Transnistria and Gagauzia

​TRANSNISTRIAN CUSTOMS SERVICE MAKES REVELATORY STATEMENTS ABOUT SHERIFF HOLDING

01 july, 2016

Customs service of the unrecognized Transnistrian Moldovan republic (PMR) made public the results of an investigation in activities of the “Sheriff” group of companies.

According to the PMR customs service’s press release, in 1997, Sheriff in fact was given the status of the only special importer, receiving a document for this from president Igor Smirnov. He kept signing this document each year till 2011. The document prohibited other economic agents except Sheriff to import to the region cigarettes and ethylic alcohol.

“There were indicated preferences: Sheriff was provided with preferences at paying of customs duties, excise taxes, other taxes and charges at importing cigarettes and cigarillos, ethylic alcohol, building materials, consumer goods, beer and alcohol, road transport, spare parts and equipment. The privileges were provided on importing and exporting of ferrous and non-ferrous metal scrap. The holding was exempted from mandatory selling of currency revenues and certificating of the imported goods. Sheriff was allowed to sell at cash foreign currency”, the press release says.

Customs officers state that within the period of 2011-2011, the volume of goods, imported by the holding was considerably higher than average statistic norms of consumption of the region’s population.

The Sheriff’s rule in the region became a result of the scheme on tax evasion, created in 1990s.

“The established regime created uneven competition for domestic producers. As a result, major enterprises went bankrupt, in particular the Ribnita sugar-alcohol factory, “Biohim” from Bender, Dubasari tobacco-fermentation plant. The economy branches – agriculture, poultry production, animal husbandry were weakened”, the document says.

“Over 6 years (2006-2011), Sheriff imported goods, including excisable products, with total worth of US$1.7 billion. With all this, only US$22.3 million were transferred to the Transnistrian budget from the company’s external trade activities. The customs burden on the holding did not exceed 1.3%, while for all other economic agents it was 55%”, the investigation results say.

“Only one-tenth of goods, imported in Transnistria was sold within the region. The rest was directed to Moldova, Ukraine and Russia, even to west European countries without registration. Per one economic agent in the person of Sheriff accounted 91% of food products’ imports in 2006-2011”, Transnistrian customs committee Iury Gervaziuk said.

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